![]() Moreover, in August 2022, SEC was investigating Coinbase staking operations. Like Coinbase, Binance.US supports staking for several coins. According to Etherscan, the exchange Coinbase is the second-largest depositor of staked Ether.įurther, the companies allow users to stake cryptocurrency and receive significant returns without specialized computers or equipment or a minimum of 32 Ether requirement. As the crypto exchanges like Coinbase, Kraken, and others have entered the staking market to expand their revenue streams. Staking entails receiving rewards in exchange for holding coins to maintain transaction orders on various blockchains. SEC chose not to respond to any of Armstrong’s tweets”. And that should be regulated by its guidelines. Also, previously, the SEC chair Gary Gensler, suggested that staking may fall under the regulator’s authority. Despite the fact that the Commodity Futures Trading Commission (CFTC), has classified Ether as a commodity.Īccording to the regulators, the majority of digital tokens are securities. Staking brings many positive improvements to the space, including scalability, increased security, and reduced carbon footprints.Īrmstrong’s tweet may be surprised many in the cryptocurrency industry. It allows users to participate directly in running open crypto networks. Crypto Staking: Definition, Benefits, and Tips Education Leadership Product Youve successfully subscribed to Blog & Resources Binance.US Great Next, complete checkout for full access to Blog & Resources Binance.US Welcome back Youve successfully signed in Success Your account is fully activated, you now have access to all content. Staking is a really important innovation in crypto. And, he highlighted FTX and said Enforcement-based regulation encourages companies to run operations overseas. Activities staking opportunities do not last. Securities and Exchange Commission (SEC) wants to “get rid of individual investors” from staking cryptocurrency.Īccording to a February 9th tweet from Coinbase’s Chief Executive officer, the U.S SEC intends to ban retail investors from participating in staking crypto, the revenue-generating strategy at the base of operating blockchains, such as Ethereum. For instance, a coin such as BEL might offer a 15 day staking period with an annualized interest rate of, say, 18. SEC remaining silent for Brian Armstrong’s Tweets.Ĭrypto exchange Coinbase CEO Brian Armstrong was alarmed about the rumors he received that the U.S. Coinbase CEO says Enforcement-based regulation doesn’t work.
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